House Bill 173 amends Tennessee Code Annotated to establish new reimbursement rates for rural hospitals serving TennCare enrollees. It designates existing language in Section 71-5-161(d) as subdivision (d)(1) and introduces a new subdivision (d)(2) that defines "rural area" and "rural hospital." The bill stipulates that the minimum reimbursement for routine, nonspecialized inpatient services at rural hospitals will be 100% of the current FFY Medicare reimbursement, with a maximum of 120%. Additionally, the director of TennCare is authorized to seek federal waivers necessary for implementing these reimbursement levels without expanding Medicaid.

The bill also modifies subsection (e) of Section 71-5-161, requiring the bureau to publish and annually update a list of MS-DRGs (Medicare Severity Diagnosis Related Groups) on its website and provide this updated list directly to participating rural hospitals. This change aims to ensure that rural hospitals have access to the most current information regarding service categories and reimbursement structures. The act is set to take effect upon becoming law, emphasizing the importance of supporting rural healthcare facilities.

Statutes affected:
Introduced: 71-5-161(d), 71-5-161